Overview of Poca Valley Bank

Established in 1908, Poca Valley Bank is a relatively small bank. The company’s main office is located in the city of Walton in the state of West Virginia. There are a total of 46 banks operating in the state of West Virginia and combined these banks have $41,173 million of assets. Poca Valley Bank has been operating for 114 years. The bank first got insured by the Federal Deposit Insurance Corporation in the year 1934 which is effectively the first year it was possible to get insured by the agency, which itself was founded in the prior year. The FDIC is also serves as the primary federal regulator for the bank. Mainly because of its relative size, geographic reach and presence, the bank is considered to be a community bank, instead of a national bank. Based on our estimates, we believe its asset base of $474 million ranks it in the 60th percentile of banks in the United States. Poca Valley Bank is primarily a domestic bank and does not have offices outside of the United States. Domestically, the bank currently has 7 offices. In terms of headcount, the bank currently has 105 employees.

Details on the Bank’s Asset Composition

As noted earlier, the bank has total assets of $474 million. In addition, the bank has a deposit base of $421 million and net loans outstanding of $334 million. Domestic deposits currently represent (in terms of total size), 89% of the bank’s total assets, and 100% of the bank’s total deposits outstanding. Within these deposits 80% are insured based on the latest available information. Looking at the asset side of the balance sheet, 71% of the bank’s assets consisted of loans to customers, this is on a gross basis. Real estate loans alone comprised 70% of the outstanding loans. Poca Valley Bank has $152 million of outstanding 1-4 family residential loans (mortgages), which in total represents 45% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 8% and 22% of loans outstanding, respectively. Auto loans represents 4% of loans outstanding.

Contact Information and Other Facts For Poca Valley Bank

  • Main Office Address: 7033 Charleston Rd., Walton, WV 25286
  • Website: www.pocavalleybank.com
  • Total Number of Branches: 7
  • Total Number of International Branches: None
  • Number of Employees: 105
  • FDIC Certificate Number: 11952
  • FDIC Community Bank: Yes
  • FDIC Field Office: Scott Depot
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 851239
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

poca valley bank-financial-metrics-sept-21

The bank had total assets of $474 million based on the latest available information. Its total assets have increased substantially over the past year, with an increase of 8.1%. In terms of the bank’s lending activities, net loans represented 70.5% of its total assets, and stood at $334 million. The bank’s loan portfolio has increased over the past year, with an increase of 5.1%. Residential mortgages comprise 45% of the outstanding loans of the bank. The outstanding balance of residential mortgages has increased over the past year by 6.1%. In addition, the bank provides loans to commercial and industrial businesses, which represents 21.8% of its total lending and stood at $73 million based on the latest available information. The bank also provides loans for farm-related activities, which currently amounts to 0.2% of its total loan portfolio. Credit card-related lending represents 0.6% of the banks total lending. This represents the outstanding balance of credit cards that the bank has issued to its customers. Finally, the bank also engages in the provision of auto loans. These are loans provided to customers to help finance vehicle purchases. Auto loans represent 3.9% of the bank’s total lending.

Bank Liquidity and Funding

While most banks are insured by the FDIC, the insurance coverage does not always provide full protection. Therefore, understanding a banks liquidity and funding is important to help assess the riskiness of a bank’s balance sheet. Oftentimes one of the cheapest forms of funding is customer deposits. Poca Valley Bank has total customer deposits outstanding of $421 million. The bank’s deposit base has increased substantially over the past year, growing 9.4%. The average bank in the country has a loan to deposit ratio of approximately 82%. In comparison, Poca Valley Bank has a loan to deposit ratio of 79% which is below the average. A lower ratio is generally better as it indicates that the lending activities of a bank are more comfortably covered by its deposit base. Deposits, as noted earlier, are usually a cost effective source of financing. The entirety of the bank’s deposit base stems from domestic depositors.

Bank Performance and Capital Metrics

poca valley bank-performance-metrics-sept-21

The above chart provides a brief summary of some of the key performance metrics for Poca Valley Bank. Next to these metrics are the equivalent for the average U.S. bank. When it comes to the bank’s return on assets, over the past year it has improved. Importantly, on this metric we can also see that the bank is below the average bank. Return on assets tells us how productive a bank is being with its asset base. Next, looking at the bank’s return on equity, which tells us how much of a return the bank has generated for its owners, over the past year it has improved. In addition, we can also see that the bank is below the average bank on this metric. Another metric that is helpful in contextualizing a bank’s return on equity is its leverage ratio. A lower ratio means that the bank has a higher reliance on borrowing to deliver its return on equity. In this case, the total leverage ratio is currently below the average U.S. bank, and has been relatively stable over the past year. Finally, Poca Valley Bank’s Tier 1 capital ratio has been relatively stable over the past year. On this metric the bank is below the national average.

Concluding Comments on Poca Valley Bank

Overall, we believe Poca Valley Bank deserves a rating of 2.6 out of 5.0, which is average. While for example, the bank shines when it comes to its cost of funds, which is above the national average, its return on assets is a downward force on its rating. On this metric, the bank is below the national average. Finally, please note that the rating information is based on our proprietary scoring system. This system was developed by us and leverages data from a nationwide bank study. Importantly, keep in mind that none of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.